How to Diversify Your Bitcoin Holdings
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Diversification is an important part of a financial portfolio. But I've got 90% of my holdings in Bitcoin (CRYPTO: BTC), so diversification means something different to me. It means not keeping all of my Bitcoin in one wallet. This practice is the same as not keeping all of your money in a single bank account, or all of your stock with one broker. There are a few organizational challenges in spreading out Bitcoin into various wallets, but a range of solutions exist for storing cryptocurrencies. I recommend making use of as many that make sense for you.
Part of the challenge of owning Bitcoin is keeping track of it all. For every wallet with Bitcoin inside of it, you will have a corresponding recovery phrase. It doesn't make sense to keep all of the recovery phrases in one place. If that place is compromised or discovered by attackers, then you've lost all of your wallets. If that place burns to the ground, then you've lost your Bitcoin. For something as decentralized as Bitcoin, it's a bit of an issue to simultaneously have to deal with the centralization of wallet recovery phrases. Luckily there are some tips for decentralizing your wallets.
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Source Fool.com
